Homeland Energy Group announced that it has finalized the loan arrangement with GMR Energy (Mauritius) Limited. Under the terms of the arrangement GMR has advanced CDN$4,996,928 to the company, which will be used for general corporate purposes at its Kendal operation in South Africa.
Homeland Energy Group Ltd. update the status of its Kendal Colliery following a planned shut-down for plant improvements and on its key exploration projects in South Africa. Following processing plant improvements the Kendal plant is running at +20% better than original plant capacity, and plant yields are in the +50% range, a significant increase over the yields from previous months and is expected to produce in excess of 60,000 tonnes per month of saleable coal. Management expects total operating costs will be in the range of ZAR270 to ZAR300 per saleable tonne at full production (US$29.45 to US$32.50 at current exchange rates). March production was 109,639 ROM tonnes, in line with budget. Plans for Kendal include a further production expansion in 2010 to increase the monthly ROM from approximately 120,000 tonnes per month to approximately 180,000 tonnes
per month.
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